JP/Retailers expect a good H2

As the economy improves, modern retailers expect their sales to grow by 15 percent in the second half-year from a year earlier, compared to the 10 percent growth they witnessed between the first six months of 2008 and 2009.

Between January and June 2009, modern retailers booked Rp 30.8 trillion (US$3.1 billion) in sales, a 10 percent rise from the Rp 28 trillion posted in the same period in 2008, according to the Association of Indonesian Retailers (Aprindo).

Aprindo chairman Benjamin J. Mailool said Monday that higher demand in the first half-year had led to existing industry players opening new shops and prompted new players to start retail businesses.

“New players contributed 4 percent of the sales increase, while existing players contributed 6 percent,” he said of the first half-year’s performance.

Last month, a Nielsen Company survey stated that the total sales recorded in 2009 by both modern and traditional retailers might reach a staggering Rp 104 trillion, or a 10 percent rise from the Rp 94 trillion witnessed in 2008.

However, the survey only covers 54 fast-moving consumer goods (FMCG).

According to the survey, the retail sector has booked a double-digit annual growth since 2003.

In the second half of the year, Aprindo expects modern retail sales to increase by 15 percent from the Rp 42 trillion recorded between July and December last year.

“We expect to see more than Rp 48 trillion in sales this second half-year,” he said, adding the association represented about 10,000 retail outlets across the country.

PT Hero Supermarket, one of the top players in the industry, shared the association’s optimism, as its sales grew by 13.4 percent to Rp 3.1 trillion in the first half-year.

John Callaghan, Hero Supermarket president director, said he was convinced his company was well prepared to face any challenges in the second half-year, including competition from other top retailers such as Carrefour.

“We are pleased to announce that [our] business performed well. We look forward to a better sales performance in the second half.”